Financial News Bites…. Oct 17th 2012

THE Spanish government said today it will decide within the next few weeks whether to ask for outside financial help.

It noted that it might opt for a precautionary line of credit instead of bailout cash.

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BANKS have hit back at claims by the Central Bank’s director of banking supervision that they have adopted a “wait and see” approach to arrears.

Fiona Muldoon yesterday accused the banks of paying “lip service” to the idea of making progress in dealing with mortgage arrears.

The Irish Banking Federation said today that banks are addressing the problem in accordance with the timeline set down by the Central Bank itself.

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THE German government has cut its official 2013 economic growth forecast from its previous prediction of 1.6% to 1%.

But the Economy Ministry increased this year’s forecast for the country’s economy – Europe’s largest – from the 0.7% it predicted in April to 0.8%.

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